VEU extension to 2045 Bill passed: a rock-solid signal for businesses to invest, 13 May 2025
Late today the Victorian Parliament passed the Victorian Energy Efficiency Target Amendment (Energy Upgrades for the Future) Bill 2025 after a final reading and discussion in the Upper House. The Bill extends the Victorian Energy Upgrades program to 2045 from its current legislated end date of 2030.
“This is the rock-solid signal industry needs to invest in energy efficiency for the next two decades in Victoria, and something we have been advocating on for several years,” said Energy Savings Industry Association (ESIA) President, Ric Brazzale.
The VEU extension is well timed as the Victorian government finalises its target setting processes for the next five years in two tranches, for 2026-27 and then 2028-30, so the recommendations can be progressively applied from the VEU strategic review which is now in train.
“We need the Victorian government to now accelerate ‘upgrading’ the VEU with a longer-term vision, to be more fit for purpose so millions more Victorian homes and businesses can tap into the upfront financial discounts the VEU provides when replacing old inefficient appliances with more highly efficient technologies.
According to the ESIA, the VEU can further expand its effectiveness by updating its core objective, to reduce greenhouse gas emissions, to now also reduce electricity peak demand. This fundamental addition will unlock more significant energy and bill savings for Victorian households and businesses by supporting rooftop solar PV and battery storage as well as energy efficient appliances. There are more than 700,000 Victorian households with rooftop solar PV are now spilling free electricity in the middle of the day when they could be soaking it up into their own battery, hot water system or electric vehicle using integrated smart technology that could all be supported by the VEU.
“It’s a no brainer. We commend the Victorian Parliament for supporting the VEU Extension Bill,” concluded Mr Brazzale.
The Bill will get Royal Accent in the coming days as is the usual formality.
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Media contact: Jessica Lynch, M 0417 539 377, comns@esia.asn.au
(PDF ESIA media release)
